All Forum Posts by: Eric Nelson

In a market where interest rates are high, deals are tighter, and uncertainty seems to be the norm, reserves are one of the most underrated forms of protection an investor can have.

We often talk about cash flow, returns, and growth — but what truly sustains a portfolio in challenging times is the ability to withstand the unexpected. Whether it’s a surprise repair, a vacancy spike, or a refinance delay, your reserves are what keep you from making reactive decisions that can hurt long-term performance.

Strong reserves don’t just protect the property — they protect your reputation, your investor relationships, and your peace of mind.

Here are a few quick takeaways to remember:

• Hold a minimum of 3–6 months of operating expenses for each property.
• Build a capital expenditure reserve — roofs, HVAC, and parking lots don’t last forever.
• Plan for the unknown. Markets shift, but disciplined operators don’t.

Reserves aren’t a “nice to have.” They’re a reflection of stewardship and wisdom in how you manage investor capital and build for the future.

If you want to dive deeper into how we’re structuring reserves in today’s deals, feel free to reach out.

Let’s keep building wisely,

-Eric Nelson

If you’ve ever looked at a multifamily deal, you’ve likely been handed an Offering Memorandum (OM)—a glossy PDF packed with numbers, charts, and well shot photos.

But here’s the truth: not all OMs are created equal, and knowing how to read one is an essential skill for any investor.

Here are a few key areas to focus on:

• Market Story vs. Market Reality
  OMs are designed to sell the opportunity, so pay attention to the assumptions about rent growth, job growth, and population trends. Always verify with independent data sources.
• The Business Plan
  Look for a clear, realistic path to value creation. Is it a light renovation, operational efficiencies, or a full repositioning? The plan should make sense given the property’s current condition and the market.
• Projected Returns
  Numbers can look impressive on paper, but dig into how they’re achieved. Are distributions dependent on aggressive rent growth? Are exit assumptions reasonable for the market cycle?
• Risk Factors and Sensitivity
  A solid OM should outline not only the upside but also the potential risks. Pay attention to what happens if interest rates rise, occupancy dips, or renovation timelines get delayed. Look for a sensitivity analysis that shows how returns might change under different scenarios. The best deals are structured to weather challenges—not just shine in perfect conditions.

An OM is a great starting point - but it’s only one piece of your due diligence process. The best investors read between the lines and ask the right questions.

Trust, but always verify—that’s how you protect your investments for the long term.

What are some of your own considerations when reviewing an offering memorandum? 

Whether you're looking to invest as a limited partner - or you're aiming to attract LP capital for your next multifamily deal, there’s one thing that, in my opinion, matters most:

How you show up.

After years in the multifamily syndication space, I’ve seen both sides. The best sponsors and the most successful LPs share the same core habits. If you’re doing these, you're building long-term trust, capital, and deal flow.

1. Clarity is key.

Top LPs know their investment goals: cash flow vs. equity growth, timeline, risk tolerance. Likewise, top sponsors communicate clearly who their deals are for and who they’re not. Specificity builds confidence on both sides.

2. Due diligence is expected - panic is not.

Whether you’re investing or raising capital, strong LP relationships are built on transparency. Ask smart questions. Be informed. But don’t jump ship at every market wobble. GPs want partners who understand real estate is a long game.

3. Reputation matters more than pitch decks.

Savvy LPs invest in operators they trust. Sponsors attract more capital when they show up consistently, share real data (even when it’s not perfect), and follow through. One deal can lead to ten - but only if you build the right reputation.

4. Diversification is smart - for LPs and sponsors.

LPs who spread their capital across multiple sponsors, markets, and deal types reduce risk. Sponsors who attract LPs from a variety of backgrounds (not just friends and family) create a more resilient capital base.

If you want to become the kind of LP sponsors love, or the kind of sponsor LPs line up to work with - start with these four habits.

This is how trust is built. And trust is what drives successful syndications.

Keep growing!

Eric Nelson

Hey @Tina Stuart, welcome to the community! I am a coach and have a mastermind group specifically for multifamily (that's what I specialize in). Happy to chat more to see if it's a fit. Regardless, great goal and wishing you luck. 

Hello Matt, I am a coach and have a mastermind group. What type of properties are you after? My specialty is multifamily and done tons of single family deals as well. Happy to chat more to see if it's a fit. 

As many have suggested, I would agree talking to brokers. I just closed a deal a few weeks ago that was brought to me by the broker. I am actually hosting a live free training on this specific topic on August 13th if you're interested in joining. I will send you the link in case you are - no pressure if not. 

Owen, I will shoot you a message. There are several other options you can explore, and we have had success with. One example- you could get a line of credit as a second lien, and keep that first loan in place. 

Hey Jon! Nice post all around. I'm going to shoot you a message to see how I can help. 

I sent you a message. Happy to help!

I sent you a message also. You will want to start with word of mouth, and create a plan. Are you wanting to build a brand, or build yourself as a brand, or both. Happy to connect and help you!